ECB Outlook Caps EUR/USD Upside – Commerzbank
Commerzbank’s Michael Pfister says the ECB’s expected rate hike is already priced into EUR/USD and doubts President Lagarde will commit to multiple hikes, while cooling oil prices and softer inflation further limit upside.
Commerzbank strategist Michael Pfister notes that the European Central Bank is expected to deliver its first rate hike in months, but this move is already fully discounted in EUR/USD. He questions whether ECB President Christine Lagarde will pre-commit to a series of further increases.
Additional headwinds for the euro come from declining oil prices and softer inflation readings, which reduce the urgency for aggressive tightening. As a result, the potential for sustained euro gains against the dollar remains limited.
Source: FXStreet Forex News